CVS Health is teaming with the U.S. Postal Service to deliver prescription medications to customer’s homes, using one of President Trump’s favorite foils to compete against another: Jeff Bezos’ Amazon.
The Postal Service is facing pressure from the White House to raise the price it charges Amazon to ship parcels, despite the potential to raise deficits at the independent agency. The administration has launched an investigation into the finances and operations of the Postal Service as the president continues to express frustration with news coverage of the Washington Post, which is owned by the Amazon founder.
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A CVS Health spokeswoman confirmed the company is using the agency’s standard delivery service and will not be receiving any discounted shipping rate.
Same-day shipping from CVS, which was available in New York City last year, will now be offered for $8.99 in five additional markets, including D.C. and Miami. Customers must be within one mile of a CVS store to qualify. The company will also offer 1-2 day deliveries nationwide for a flat fee of $4.99, a service that comes without a location requirement.
The pharmacy chain is among retailers nationwide adjusting their business to better compete against Amazon, which offers free, expedited shipping through its popular Prime service and is reportedly considering expanding into the pharmacy business. CVS Health’s decision to use the Postal Service contrasts with other retailers that have turned to private companies like FedEx Corp. or United Parcel Service.
CVS Health is awaiting federal approval for its proposed merger with health insurer Aetna Inc.
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